Short: change of heart over Montserrat

Clare Short to Visit Montserrat

The minister's refusal to visit the island - as well as her criticism of Montserratian politicians for being greedy - had caused a diplomatic and political row.

Ms Short's junior minister George Foulkes - who is on Montserrat to examine the problems faced by the island's remaining population at first hand - said he would return in about two months, accompanied by the Secretary of State.

"She is looking forward to it enormously, absolutely enormously," he said. "When I came here people said to me I was in for a rough ride, but I have had a wonderful welcome. The only awkward questions have come from the media. It is the Montserratian people we are concerned about."

Mr Foulkes made the announcement as he gave details of a medium-term plan for the development of the island's safe area in the north of the island. Ms Short had accused the island's political leaders of having an unrealistic shopping list of demands for assistance and said "they will be wanting golden elephants next". This was a remark that she later conceded was unfortunate.

The minister himself had to deny exacerbating the crisis by overstating the risk of further eruptions. He has reassured Montserratians of the Government's commitment to the island with the repeated refrain that "Britain will never abandon Montserrat".

Only the north of Montserrat is habitable

Mr Foulkes confirmed that money for an emergency housing programme, which had been frozen pending an assessment of the need for accommodation, would now be spent immediately.

He also announced that a self-build housing scheme would be put in train, with low interest mortgages available for those displaced from their homes in the south and central parts of the island by the Soufriere Hills volcano.

The Government will also initiate schemes to encourage further investment in the redevelopment of the island. Mr Foulkes said that in the longer term the Government would take six months to prepare a development plan for the island, concentrating on infrastructure projects, to be implemented over five years.

Foulkes: mending fences

Although Mr Foulkes did not put a figure on the programme he said the UK's spending would be "significant". It is believed that the Government intends to spend far more than the £41m already promised in aid.

Montserrat's authorities have suggested that the island's new capital be renamed Port Diana as a tribute to the Princess.